Vietnam's High Hopes for China-ASEAN Trade Fair & Free Trade Area

Vietnam's High Hopes for China-ASEAN Trade Fair & Free Trade Area 

Deputy Prime Minister Pham Gia Khiem will lead a 300 plus-member delegation to attend the first China-ASEAN Trade Fair slated for November 3-6 in the Chinese province of Guangxi. Via participation in the fair and in the construction of the China-ASEAN Free Trade Area, Vietnam wishes to build good relations with other Southeast Asian nations and China, facilitate trade among the countries, improve its competitiveness, and take advantage of foreign advances.

Vietnam will take part in special events at the fair, namely a China-ASEAN trade and investment conference, ASEAN forums calling for investment and trade exchange, and a Vietnam-China business forum, the deputy prime minister said, adding that its participation aims to strengthen traditional ties between Vietnam and China as well as other members of the Association of Southeast Asian Nations (ASEAN), and facilitate trade among the countries.

At over 80 national and commercial pavilions at the fair, local enterprises will display their products and services in the fields of farm produce, seafood, processed foodstuffs, handicrafts, garments, cosmetics, tourism, transport, investment and industry with the aim to expand export markets, seek new partners, distribution channels and investment opportunities, and take advantage of the integrated China-ASEAN Free Trade Area, he said.

He stated that the area’s formation with the gradual abolition of both tariff and non-tariff barriers and implementation of trade-facilitation measures will strengthen Vietnam-China relations, especially trade and economic ties. The target of posting bilateral export turnovers of US$10 billion in 2010 set by the two countries’ leaders is within reach, he said, noting that two-way trade soared to nearly US$4.9 billion in 2003, up nearly 50 per cent against 2002 and 150 times that of 1991.

Joining the trade area will help Vietnam enhance its productive forces and competitiveness, and take advantage of capital sources, technology, science, and managerial skills, Khiem said, adding that Vietnam wants China to offer it certain preferential treatment so that it can better cope with the challenges initially posed by participation.

Doan Duy Khuong, Vice Executive President of the Vietnam Chamber of Commerce and Industry (VCCI), the country’s largest trade and investment promotion agency, said Vietnam attaches great importance to upgrading infrastructure, like the establishment of two economic corridors involving several Vietnamese and Chinese localities, so that Vietnam-China trade ties can make sustainable development. Vietnam and China play an important part in Asia’s development in general and South and Southeast Asia in particular. Asia should form a large trade community like the European Union, he said. 

ASEAN and China are expected to sign a goods trade agreement in late November 2004 in Laos so that they can start lowering tariffs from January 1, 2005. The two sides have agreed to work faster towards a free trade agreement in 2010, thus creating the world's largest free trade area of nearly 2 billion consumers with gross domestic product of over US$2 trillion by that time.

• Dong Phong